Public servants are looking at immediate salary and allowance increases until 2027 after President Ferdinand “Bongbong” Marcos Jr. issued an executive order that the Palace announced yesterday.
The updated salary schedule will be implemented in four tranches: retroactively from 1 January 2024; the second tranche on 1 January 2025; the third on 1 January 2026; and the fourth on 1 January 2027.
Marcos approved Executive Order (EO) 64, signed by Executive Secretary Lucas Bersamin, on 2 August updating the salary schedule for all government personnel in the executive, legislative, and judicial branches, the constitutional commissions and offices.
Malacañang said the order would take effect 15 days after publication in the Official Gazette or a newspaper of general circulation.
The last time that salaries of government employees were adjusted was in 2023, when the fourth and final tranche of the modified salary schedule under the Salary Standardization Law of 2019 expired.
“Given the prevailing economic circumstances, including the erosion of purchasing power due to inflation, there is a need to update the salaries and benefits of government personnel in order to maintain a competent, committed, agile, and healthy workforce, thereby promoting social justice, integrity, efficiency, accountability, and excellence, and ultimately translating to increased productivity and higher quality public service,” Marcos said.
EO 64 also covers government-owned or controlled corporations not covered by RA 10149 or the GOCC Governance Act of 2011 and EO 150, and local government units.
More windfalls
Budget and Management Secretary Amenah Pangandaman said P70 billion has been earmarked from the national budget for the salary increases.
Marcos tasked the Department of Budget and Management (DBM) to issue the guidelines necessary to implement specific provisions of EO 64.
Aside from salary adjustments, government employees can also expect a medical allowance of P7,000 per annum as a subsidy for availing of health maintenance organization-type benefits.
However, EO 64 does not apply to those hired under job orders, contracts of service, consultancy or service contracts.
Also not covered by the order are those working in GOCCs who are covered by a separate compensation and position classification system.
Pangandaman said guidelines for the EO will be issued soon.
“I already instructed our DBM officials concerned to swiftly complete the guidelines for the salary increase,” Pangandaman said in a statement.
“We will rush the implementing guidelines so that government employees will see their first round of salary increases this 2024,” she added.
Pangandaman said approximately P36 billion from the Miscellaneous Personnel Benefits Fund (MPBF) under the 2024 General Appropriations Act would be allotted to the implementation of the first tranche of the salary increase.
She said the DBM has earmarked around P70 billion under the 2025 MPBF to cover the additional cost requirements for both the first and second tranches.
Pangandaman said the first tranche of the salary increase would be retroactively given to government personnel this year.
“The increase this year and next year is already secured,” she said.
“The computation for our initial tranche is retroactive to 1 January 2024, so there would be a salary differential or back pay,” she added.
Pangandaman expressed her gratitude to Marcos for making her dream to increase government workers’ salaries “finally become a reality.”